Bitcoin Analyst Predicts Trend Higher Following Leveraged Positions Liquidation ๐
Following a recent liquidation of highly leveraged positions in the cryptocurrency market, including Bitcoin, an analyst suggests that the market may experience an upward trend. The liquidation occurred just before the halving event, leading to a significant decrease in leveraged long positions.
Lower Leverage Conditions Favorable for Bitcoin Price Appreciation ๐
According to a recent analyst note from Standard Chartered Bank, the current market conditions are characterized by lower leverage levels. This reduction in leverage could potentially pave the way for an increase in Bitcoinโs price. The note, led by Geoffrey Kendrick, indicates that the worst may be over, and the digital assets market could now trend higher.
- Flush-Out of Leveraged Longs: The recent sell-off resulted in the liquidation of over $261 million of Bitcoin long positions on April 13.
- Cleared Path for Growth: Kendrick believes that the significant liquidation has cleared the path for Bitcoin to move higher, especially since the negative news is already reflected in the price.
2024 Price Targets Unchanged by Standard Chartered ๐ฏ
Standard Charteredโs note also reaffirmed its end-of-2024 price targets for Bitcoin and Ether, setting them at $150,000 and $8,000, respectively. As of the latest update, Bitcoin was trading at $66,700, with a 0.5% increase in the past 24 hours.
- Total Market Cap: The total cryptocurrency market cap saw a 1.5% increase, reaching $2.59 trillion.
- Market Indexes: The GM 30 Index, consisting of the top 30 cryptocurrencies, rose by 0.83% to 138.50 in the last 24 hours.
Hot Take: Potential Upside for Bitcoin Price Post-Liquidation โจ
Following a significant liquidation of leveraged positions in the market, Bitcoin may see a positive trend in its price. With lower leverage conditions and the removal of a substantial amount of leveraged longs, there is potential for Bitcoinโs price appreciation. The recent sell-off has paved the way for growth, with analysts reiterating optimistic price targets for Bitcoin in the coming years.
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